Title : Investment Opportunity Set (IOS) In Mediating Company Advantage to Funding Policies in Lq45-Indexed Companies

Vol 6 No 5 (2023): Volume 06 Issue 05 May 2023

Article Date Published : 6 May 2023 | Page No.: 2765-2773 | Google Scholar | Crossref doi for this article

Abstract :

This quantitative study aims to determine and analyze the effect of investment opportunity set (IOS) in mediating company advantage in the form of company size and profitability on funding policies in LQ45-indexed companies in 2019-2020. The population of this study is 54 companies. It involved 24 Samples selected using a purposive sampling technique. Data were collected from the documentation and data presentation using time series data. Data were analyzed using regression analysis, path analysis, and the Sobel test. The results showed that there is no effect of company size on funding policy and profitability has a negative effect on funding policy. Besides, IOS has a positive effect on funding policy and company size does not affect IOS. Profitability has a positive effect on IOS. IOS cannot mediate company size against funding policies. IOS can partially mediate profitability against funding policies. Companies use the opportunity to grow with the amount of debt to get more value with their investment. Companies positively respond to the extent of investment opportunities by turning their capital from internal and external companies for investment purposes.

Keywords :

Company Size, Funding Policy, Investment Opportunity Set, profitability

References :

  1. Atmaja, L. (2008). Teori dan Praktek Manajemen Keuangan. Yogyakarta: Penerbit ANDI
  2. Efni, Y. (2012). Keputusan Investasi, Keputusan Pendanaan dan Kebijakan Deviden: Pengaruhnya terhadap Nilai Perusahaan (Studi pada Sektor Properti dan Real Estat di Bursa Efek Indonesia)(Doctoral dissertation, Universitas Brawijaya).
  3. Yuwantari, W. N. (2003). Pengaruh asset tangibility, profitability, size, business risk, dan growth opportunities terhadap kebijakan leverage perusahaan: Studi empiris pada Bursa Efek Jakarta(Doctoral dissertation, Universitas Gadjah Mada).
  4. Mayangsari, S. (2017). Analisis faktor-faktor yang mempengaruhi keputusan pendanaan perusahaan: Pengujian pecking order hyphotesis. Media Riset Akuntansi, Auditing & Informasi, 1(3), 1-26.
  5. Ferri, M. G., & Jones, W. H. (1979). Determinants of financial structure: A new methodological approach. The Journal of finance, 34(3), 631-644.
  6. AlNajjar, K. & Riahi‐Belkaoui, A. (2001). “Empirical validation of a general model of growth opportunities”. Managerial Finance. Vol. 27 No. 3. pp. 72- 90.
  7. Hikmah, K., & Haryono, T., Djuminah, D., & Nasrulloh, R. 2019. Investment opportunity set, institutional ownership, family ownership and funding policy. Management Science Letters, 9(13), 2201-2214.
  8. Seftianne, S., & Handayani, R. (2011). Faktor-faktor yang mempengaruhi struktur modal pada perusahaan publik sektor manufaktur. Jurnal Bisnis dan Akuntansi, 13(1), 39-56.
  9. Wiagustini, N. L. P., & Pertamawati, N. P. (2015). Pengaruh risiko bisnis dan ukuran perusahaan pada struktur modal dan nilai perusahaan pada perusahaan farmasi di Bursa Efek Indonesia. Jurnal Manajemen, Strategi Bisnis Dan Kewirausahaan Universitas Udayana, 9(2), 112-122.
  10. Hudan, Y., Isynuwardhana, D., & Triyanto, D. N. (2016). Pengaruh Profitabilitas, Likuiditas, Dan Ukuran Perusahaan Terhadap Struktur Modal Perusahaan (pada Perusahaan Pertambangan Subsektor Batubara Yang Terdaftar Di Bursa Efek Indonesia Tahun 2011-2015). eProceedings of Management, 3(2).
  11. Ticoalu, R. M. A. (2014). Faktor-Faktor yang Mempengaruhi Struktur Modal pada Perusahaan di Sektor Agriculture yang Terdaftar di Bursa Efek Indonesia Periode 2007-2011. CALYPTRA, 2(2), 1-21.
  12. Sabir, M., & Malik, Q. A. (2012). Determinants of capital structure–a study of oil and gas sector of Pakistan. Interdisciplinary Journal of Contemporary Research in Business, 3(10), 395-400.
  13. Vergas, N., Cerqueira, A., & Brandão, E. (2015). The Determinants of the Capital Structure of Listed on Stock Markets Nonfinancial Firms: Evidence for Portugal, School of Economics and Management, University of Porto.
  14. Pebriyanti, N. K. D., Sukadana, I. W., & Widnyana, I. W. (2020). Pengaruh Profitabilitas, Struktur Aktiva, Dan Ukuran Perusahaan Terhadap Struktur Modal Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia. Emas, 1(1), 11-19.
  15. Damayanti, N. P. M. (2012). Pengaruh Profitabilitas, Pertumbuha Aktiva, dan Struktur Aktiva Terhadap Keputusan Pendanaan Pada Perusahaan Others di BEI 2008-2011. Jurnal Manajemen Universitas Udayana.
  16. Akpinar, O. (2016). Factors Affecting capital Structure: A Panel Data Analysis on Borsa Instanbul. 13 International Scientific Conference on Economic and Social Development, 3(3): 527-534.
  17. Septiani, N. P. N., & Suaryana, I. G. N. A. (2018). Pengaruh profitabilitas, ukuran perusahaan, struktur aset, risiko bisnis dan likuiditas pada struktur modal. E-Jurnal Akuntansi Universitas Udayana, 22(3), 1682-1710.
  18. Meisyta, E. D., Yusuf, A. A., & Martika, L. D. (2021). Pengaruh Profitabilitas, Struktur Aktiva dan Ukuran Perusahaan Terhadap Struktur Modal. Jurnal Riset Keuangan dan Akuntansi, 7(1).
  19. Ahmed, N., Ahmed, Z., & Ahmed, I. (2010). Determinants of capital structure: A case of life insurance sector of Pakistan. European Journal of Economics, Finance and Administrative Sciences, 24(24), 7-12.
  20. Alfiarti, R. (2014). Pengaruh Kepemilikan Manajerial, Kepemilikan Institusional, dan Ukuran perusahaan Terhadap Keputusan Pendanaan dan Nilai Perusahaan. (Doctoral dissertation, UNDIP: Fakultas Ekonomika dan Bisnis).
  21. Akingunola, R., & Oyetayo, O. (2014). Determinant of financial structure decision in small and medium enterprises: A pilot study of selected registered companies in Nigeria. Journal of Economics and Finance, 3(1), 2321-5925.
  22. Zuhro, F., & Suwitho, S. (2016). Pengaruh ukuran perusahaan, pertumbuhan aset, dan profitabilitas terhadap struktur modal. Jurnal Ilmu dan Riset Manajemen (JIRM), 5(5).
  23. Hikmah, Khoirul & Tulus, Haryono. 2015. Antecedent Influence of Company Advantages and Disadvantages on Investment Opportunity Set and Financing Policy form The Perspective of Agency Theories. Yogyakarta: Direcorate of Development and Cooperation University of Mercu Buana Yogyakarta.
  24. Smith Jr, C. W., & Watts, R. L. (1992). The investment opportunity set and corporate financing, dividend, and compensation policies. Journal of financial Economics, 32(3), 263-292.
  25. Yuliani, Y., Zain, D. Z., Sudarma, M. S., & Solimun, S. M. (2012). Diversification, Investment Opportunity Set, Envinronmental Dynamics and Firm Value (Empirical Study of Manufacturing Sectors in Indonesia Stock Exchange). Journal of Business and Management (IOSR-JBM), 6(4), 01-15.
  26. Hikmah, K., Satmoko, A., & Nasrulloh, R. S. (2022). Mediation Model Investment Opportunity Set on Manufacturing Companies in Indonesia: Partial Least Square (PLS) Approach. Journal of Business Innovation and Research, 1(2), 155-178.
  27. Marentek, A. S. (2015). Analisis Faktor-Faktor Yang Mempengaruhi Struktur Modal Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia (Pada Perusahaan Food And Beverage Periode 2007-2010). Jurnal Berkala Ilmiah Efisiensi, 15(5).
  28. Pramana, I. W. S., & Darmayanti, N. P. A. (2020). Profitabilitas, Struktur Aktiva, Dan Ukuran Perusahaan Berpengaruh Terhadap Struktur Modal Perusahaan Otomotif. E-Jurnal Manajemen Universitas Udayana, 9(6), 2127.
  29. Hikmah, K., & Tulus Haryono, D. 2020. Endogeneity Test: Investment Opportunity Set and Ownership Structure on Funding Policies. Journal of Southwest Jiaotong University, 55(4).
  30. Hikalmi, H. U., & Fadhillah, A. U. (2019). Pengaruh risiko bisnis, pertumbuhan penjualan dan set kesempatan investasi terhadap struktur modal pada perusahaan manufaktur yang terdaftar di bursa efek indonesia. Jurnal Akuntansi dan Pembangunan (JAKTABANGUN), 5(3).
  31. Chung, K. H., & Charoenwong, C. (1991). Investment options, assets in place, and the risk of stocks. Financial Management, 21-33.
  32. Riyanto, B. (2011). Dasar-dasar Pembelanjaan Perusahaan. Yogyakarta: BPFE.
  33. Soebiantoro, U. (2007). Pengaruh struktur kepemilikan saham, leverage, faktor intern dan faktor ekstern terhadap nilai perusahaan. Jurnal Manajemen dan Kewirausahaan, 9(1), 41-48.
  34. Sartono, A. (2010). Manajemen Keuangan: Teori dan Aplikasi. Edisi Keempat. Yogyakarta: BPFE.
  35. (2016). Analisis Laporan Keuangan. Jakarta: Grasindo.
  36. (2013). Pengantar Pengetahuan Pasar Modal. Edisi 2011. Yogyakarta: UPP AMP YPKN
  37. Myers, S, C. (1977). “Determinants of Corporate Borrowing”. Journal of Financial Economics. No. 5, 147-175.
  38. Ghozali, I. (2013). Aplikasi Analisis Multivariate dengan Program IBM SPSS. 21 Update PLS Regresi. Semarang: Badan Penerbit Universitas. Diponegoro.
  39. Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of personality and social psychology, 51(6), 1173.
  40. Setiawati, M., & Veronica, E. (2020). Pengaruh Profitabilitas, Struktur Aset, Ukuran Perusahaan, Risiko Bisnis, Pertumbuhan Penjualan, Pertumbuhan Perusahaan, Likuiditas Terhadap Struktur Modal Pada Perusahaan Sektor Jasa Periode 2016-2018. Jurnal Akuntansi, 12(2), 294-312.

How to Cite :

Investment Opportunity Set (IOS) In Mediating Company Advantage to Funding Policies in Lq45-Indexed Companies. Khoirul Hikmah, Agung Satmoko, Sudaryatie, Rifqi Syarif Nasrulloh, 6(5), 2765-2773. Retrieved from https://ijcsrr.org/single-view/?id=10250&pid=10193

Most read articles by the same author(s)

Khoirul Hikmah, Agung Satmoko, Sudaryatie ., Rifqi Syarif Nasrulloh,

View

181

Citation

Downloads

Article Details